Merck Launches $1 Billion Vaccine Facility in North Carolina, Boosting U.S. Manufacturing and Job Creation

Merck, known as MSD outside the United States and Canada, has opened a new $1 billion, 225,000-square-foot vaccine manufacturing facility at its Durham, North Carolina, site. This expansion is part of Merck’s broader $12 billion investment in U.S. manufacturing and research and development since 2018. The initiative focuses on strengthening domestic production capabilities and job creation. Merck plans to invest an additional $8 billion in U.S. capital projects by 2028.

New Durham Facility Features AI, 3D Printing, and Digital Twin Technology

Merck stated that its new vaccine facility in Durham features advanced technologies, including data analytics, generative AI, and 3D printing. The site also features digital twin technology, which simulates process changes before implementation and aids in employee training. 

The company constructed the new plant on its 262-acre campus in Durham, with it operating since 2004. The site produces a range of vaccines, including those for chickenpox, measles, and rubella. The facility manufactured over 70 million doses last year, with production expected to increase this year, according to a Merck spokesperson. The campus currently employs more than 1,000 people.

“Expanding our state-of-the-art manufacturing facility in Durham marks a significant milestone in our efforts to strengthen our production and manufacturing capabilities in the U.S.,” said Sanat Chattopadhyay, executive vice president and president, Merck Manufacturing Division. “The cutting-edge technologies employed here empower our workforce and underscore our leadership in innovation to support patients everywhere.”

Image source: Merck & Co., Inc., Rahway, NJ, USA and its affiliates

Pharma Companies Prepare for Potential U.S. Tariffs Under Second Trump Administration

The facility gained national attention during the pandemic when Merck and Johnson & Johnson secured a $105 million government grant to produce bulk substance for J&J’s COVID-19 vaccine. This rare collaboration between the two pharmaceutical giants showcased the site’s significant role in the public health response.

The opening of Merck’s new facility comes as U.S. biopharma companies consider increasing domestic manufacturing in response to potential trade shifts. Amid ongoing discussions about the impact of a second Trump administration on the industry, Pfizer CEO Albert Bourla, Ph.D., outlined a potential strategy for his company if pharmaceutical tariffs are expanded. Bourla stated that Pfizer has already positioned its U.S. manufacturing setup well and could allocate additional resources to the U.S. if needed, a move he discussed at TD Cowen’s 45th annual healthcare conference in Boston.

This shift toward reinforcing domestic production follows the growing concerns over trade policies, including President Trump’s warnings about potential 25% tariffs on pharmaceuticals imported from certain countries. Recently, Eli Lilly also revealed plans to invest $27 billion to build four new manufacturing facilities in the U.S., further signaling a move toward increasing local production.

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Denisse Sandoval